With a market capitalization of ₹ 27,352 crores, Biocon is a mid-cap company in the pharmaceutical sector. It is India’s largest fully-integrated, innovation-led biopharmaceutical company that is driven by a passion to develop research-driven, cutting-edge therapies.
According to the bulk deal data available on the National Stock Exchange (NSE), Integrated Core Strategies (Asia) Pte. has bought 80,61,599 shares of Biocon Ltd. These shares were bought at an average price of ₹ 229.26 per share, taking the aggregate value of the transaction to ₹ 184.82 crores.
Biocon’s shares are in a downtrend and have lost 33.94% in the past year. Analysts attribute this fall to the company’s weak results, a recall of its drug bottles, removal from Nifty Next 50 and its recent move to reduce a stake in its research arm Syngene.
The company reported a 35% increase in its consolidated net profit for the quarter that ended on December 31, 2022, at ₹ 2,941.10 crores, against ₹ 2174.2 crores reported in the corresponding quarter last year. However, it reported a loss of ₹ 207 crores in the October to December quarter of 2022 against a profit of ₹ 2196 crores in the corresponding quarter last year.
Last month, Biocon sold a 9.96% stake in its unit and contract research firm Syngene International to fund the acquisition of Viatris Inc’s (VTRS.O) biosimilars business that it announced last year, according to reports.
In another development, Biocon recalled 3,665 bottles of an antifungal drug in the US for failed degradation specifications, according to USFDA US Food and Drug Administration
The Bangalore-based company has a return on equity of 8.08% and an ideal debt-to-equity ratio of 0.61. The company’s shares were trading at a price-to-earnings ratio of 70.80, which is significantly higher than the industry P/E of 35.25, indicating that the stock might be overvalued as compared to its peers.
Written by Simran Bafna
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